A Thai consortium recently selected to establish Thailand's second national carrier is looking for foreign investors to take an equity stake in the planned start-up operation, to be named Angel Airlines.
JVK Holdings says that it is in discussions with potential overseas investors, including foreign airlines. It admits, however, that interest in Angel is tempered by Thai Government regulations, which limit foreign airlines to a maximum of a 5% share in a local carrier and non-airline investors to a 10% stake.
Under terms laid down by the Government, the consortium is required to raise and register 3 billion baht ($94 million) in capitalisation within one month of being granted a licence. It further stipulates that the new airline must begin regional operations within 12 months of receiving its licence.
Angel plans to begin operations in August 1998, and JVK's proposal calls for the acquisition of 15 aircraft within five years, seven of which will be leased. It plans to operate eight domestic and 18 international services.
Thailand's civil-aviation board chose JVK Holdings to establish and run the country's second national carrier, following a second round of bidding. The consortium includes United Communications Industry Group, which had backed a rival bid by subsidiary Data Construction.
The Government had originally stipulated that Thai Airways International be a shareholder and that the new airline could not compete directly with the flag carrier. As a result, only one consortium bid in the first round, and then failed to post the required 500 million baht bond after being selected.
Source: Flight International
